Expect something greater than August 2011's debt ceiling crisis. Version 2.0 will demand more pounds of flesh.

Republicans have Obama where they want him. They conceded on extending most expiring benefits. They settled for half the mandated $1.2 trillion sequester.

Get even time approaches. Expect post-inaugural hardball. Middle income and disadvantaged Americans will suffer most. Congressional takeaways will way exceed benefits given.

They'll come incrementally. Obama and most Democrats support them. Eroding Social Security, Medicare, Medicaid and public pensions are prioritized. Privatizing and/or ending them altogether is planned longterm.

America's social contract will be downsized. Plans are to destroy it altogether. By 2023 or earlier, it may be entirely gone, or too little to matter will remain.

No one in Congress explains. Media scoundrels are silent. What most people need to know, they're not told. A rude awakening awaits. It's not the America this writer grew up in.

At the same time, destroying America's social contract is planned. Washington spurns doing the right thing.

Political priorities "encourage financial and rent extraction that has become the major economic problem of our epoch. Industrial productivity continues to rise, but debt is growing even more inexorably."

"Instead of fueling economic growth, this credit/debt threatens to absorb the economic surplus, plunging the economy into austerity, debt deflation and negative equity."

John Williams and other responsible economists say America's already in one. Its economy is in worse shape than acknowledged. Deeper recession is likely. Protracted Main Street Depression already affects most ordinary households.

"More economic damage" was caused by Washington's inability "to decide and stick to policy. This uncertainty, which leaves businesses preferring to hoard cash rather than invest, is the chief cause of the disappointing US performance in the past two years."

Section 317 permits expensing film and television productions. Hollywood got what it wanted.

Corporate research tax credits were extended. So were others for government-approved energy initiatives. Energy-efficient new homes are subsidized. So are some existing ones, cellulosic biofuel, and Indian coal facilities.

The alternative minimum tax (AMT) became permanent. For the first time, it's automatically indexed to scandalously manipulated low inflation.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

His new book is titled "Banker Occupation: Waging Financial War on Humanity."

http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.